<SEC-DOCUMENT>0000944075-12-000031.txt : 20120803
<SEC-HEADER>0000944075-12-000031.hdr.sgml : 20120803
<ACCEPTANCE-DATETIME>20120803133704
ACCESSION NUMBER:		0000944075-12-000031
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20120801
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Unregistered Sales of Equity Securities
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20120803
DATE AS OF CHANGE:		20120803

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SOCKET MOBILE, INC.
		CENTRAL INDEX KEY:			0000944075
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC COMPUTERS [3571]
		IRS NUMBER:				943155066
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25904
		FILM NUMBER:		121006257

	BUSINESS ADDRESS:	
		STREET 1:		39700 EUREKA DRIVE
		CITY:			NEWARK
		STATE:			CA
		ZIP:			94560-4808
		BUSINESS PHONE:		5109333000

	MAIL ADDRESS:	
		STREET 1:		39700 EUREKA DRIVE
		CITY:			NEWARK
		STATE:			CA
		ZIP:			94560-4808

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SOCKET COMMUNICATIONS INC
		DATE OF NAME CHANGE:	19950418
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form-8k0801.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 3pt; border-top: Black 3pt solid; border-bottom: Black 3pt solid; width: 100%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: bold 18pt/normal Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 18pt/normal Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">UNITED
STATES</FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt"><B>SECURITIES
AND EXCHANGE COMMISSION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt"><B>Washington,
DC 20549</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt"><B>FORM
8-K</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt"><B>CURRENT
REPORT</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt"><B>Pursuant
to Section 13 or 15(d) of</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt"><B>The
Securities Exchange Act of 1934</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt"></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"><FONT STYLE="font: 14pt Times New Roman, Times, Serif">August
1, 2012</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center">Date of Report</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center">(Date of earliest
event reported)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 20pt Times New Roman, Times, Serif; letter-spacing: -0.1pt"><B>SOCKET
MOBILE, INC.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt">(Exact
name of registrant as specified in its charter)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 29%; vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Delaware</FONT></TD>
    <TD STYLE="width: 3%; vertical-align: bottom; padding-right: 0.7pt; padding-left: 0.7pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 31%; vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>001-13810</B></FONT></TD>
    <TD STYLE="width: 2%; vertical-align: bottom; padding-right: 0.7pt; padding-left: 0.7pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 35%; vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">94-3155066</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">(State
    or other jurisdiction of incorporation)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">(Commission
    File Number)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">(IRS
    Employer<BR> Identification No.)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>39700
Eureka Drive</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Newark,
CA 94560</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt">(Address
of principal executive offices, including zip code)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(510)
933-3000</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt">(Registrant&rsquo;s
telephone number, including area code)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2. below):</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 5pt 14.25pt; text-indent: -14.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">[
] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 5pt 14.25pt; text-indent: -14.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">[
] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 5pt 0 5pt 14.25pt; text-indent: -14.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">[
] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 14.25pt; letter-spacing: -0.1pt; text-indent: -14.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: 0pt">[
] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 14.25pt; letter-spacing: -0.1pt; text-indent: -14.25pt">&nbsp;</P>

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<P STYLE="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 45.6pt; letter-spacing: -0.1pt; text-align: left; text-indent: -45.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 45.6pt; letter-spacing: -0.1pt; text-align: left; text-indent: -45.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Item
1.01 Entry Into a Material Definitive Agreement</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
August 1, 2012, the Company issued to selected officers and directors of the Company $400,000 in convertible subordinated notes.
The net proceeds of $400,000 will be used for working capital purposes.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
notes are two-year notes (&ldquo;Notes&rdquo;) that accrue interest at 8% and mature on August 1, 2014. Accrued interest is payable
upon redemption. The notes and accrued interest may be redeemed after six months. The notes are convertible into common stock
at the option of the holder at $2.44 per share as long as warrants previously issued to Hudson Bay Capital Master Fund are outstanding,
or at $2.00 per share if the Hudson Bay Warrants are no longer outstanding. The Hudson Bay Capital Master Fund warrants expire
on May 20, 2016. The Notes are secured by all of the assets of the Company and are subordinated to amounts outstanding under the
Company&rsquo;s working capital bank line of credit with Silicon Valley Bank.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
foregoing description of the Notes does not purport to be complete and is qualified in its entirety by reference to the full text
of the Form of the Convertible Subordinated Note, a copy of which is attached hereto as Exhibit 10.1, and incorporated herein
by reference. The press release announcing the Note issuance is attached hereto as Exhibit 99.1 and incorporated herein by reference.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 45.6pt; letter-spacing: -0.1pt; text-align: left; text-indent: -45.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 45.6pt; letter-spacing: -0.1pt; text-align: left; text-indent: -45.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Item
3.02 Unregistered Sales of Equity Securities</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
information set forth in Item 1.01 of this Current Report on Form 8-K that relates to the unregistered sale of equity securities
is incorporated by reference into this Item 3.02.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Securities
to be issued upon conversion of the Notes into common stock will not be registered under the Securities Act. The securities issuable
upon conversion of the Notes are being sold to accredited investors in reliance upon exemptions from registration under Section
4(2) of the Securities Act and Rule 506 of Regulation D promulgated thereunder. These securities may not be offered or sold in
the United States absent registration under, or an exemption from, the Securities Act and any applicable state securities laws.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Item
9.01 Financial Statements and Exhibits</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(d)
Exhibits.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 16%; vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 0.7pt; padding-left: 0.7pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">Exhibit
    No.</FONT></TD>
    <TD STYLE="width: 1%; vertical-align: bottom; padding-right: 0.7pt; padding-left: 0.7pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 83%; vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 0.7pt; padding-left: 0.7pt; letter-spacing: -0.1pt; font-weight: bold; text-decoration: none"><FONT STYLE="font-family: Times New Roman, Times, Serif">Description</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal; letter-spacing: -0.1pt">10.1</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Form
    of Convertible Subordinated Note</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal; letter-spacing: -0.1pt">99.1</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Socket
    Mobile, Inc. Press Release, dated August 3, 2012</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<P STYLE="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">SIGNATURES</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: justify; text-indent: 37.05pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 0.7pt; padding-left: 0.7pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">SOCKET
    MOBILE, INC.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 50%; padding-right: 0.7pt; padding-left: 0.7pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">By:</FONT></TD>
    <TD STYLE="width: 30%; border-bottom: windowtext 1pt solid; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">/s/
    David W. Dunlap</FONT></TD>
    <TD STYLE="width: 17%; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.7pt; padding-left: 0.7pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt">Name:
        David W. Dunlap</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt">Vice
        President, Finance and Administration </FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt">and
        Chief Financial Officer</FONT></P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt">Date:
</FONT>August 3, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<P STYLE="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0; letter-spacing: -0.1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">EXHIBIT
INDEX</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: right"></P>

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    <TD STYLE="width: 16%; vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 0.7pt; padding-left: 0.7pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">Exhibit
    No.</FONT></TD>
    <TD STYLE="width: 1%; vertical-align: bottom; padding-right: 0.7pt; padding-left: 0.7pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 83%; vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 0.7pt; padding-left: 0.7pt; letter-spacing: -0.1pt; font-weight: bold; text-decoration: none"><FONT STYLE="font-family: Times New Roman, Times, Serif">Description</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal; letter-spacing: -0.1pt">10.1</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Form
    of Convertible Subordinated Note</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal; letter-spacing: -0.1pt">99.1</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Socket
    Mobile, Inc. Press Release, dated August 3, 2012</FONT></TD></TR>
</TABLE>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT><B>Exhibit
10.1</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>SUBORDINATED
CONVERTIBLE NOTE</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>NEITHER
THE ISSUANCE NOR SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM
REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD
PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH
A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. ANY TRANSFEREE OF THIS NOTE SHOULD
CAREFULLY REVIEW THE TERMS OF THIS NOTE.</B></FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-variant: small-caps"><B>Socket
Mobile, Inc.</B></FONT></P>

<P STYLE="font: 12pt Times New Roman Bold,serif; margin: 0 0 24pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-variant: small-caps"><B>SUBORDINATED
CONVERTIBLE NOTE</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 51%; font: 12pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Issuance
    Date:&nbsp; August 1, 2012</FONT></TD>
    <TD STYLE="width: 49%; font: 12pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Principal
    Amount: U.S. $_______________</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>FOR
VALUE RECEIVED,</B> Socket Mobile, Inc., a Delaware corporation (the &ldquo;<B>Company</B>&rdquo;), hereby promises to pay to
the order of <B>[Note holder]</B><FONT STYLE="text-transform: uppercase">,</FONT> or its registered assigns (&ldquo;<B>Holder</B>&rdquo;)
the amount of [$_______], (the &ldquo;<B>Principal</B>&rdquo;) when due, whether by repayment in cash at the <B>Maturity Date
of August 1, 2014 </B>or being called by the note holder on or after February 1, 2013, or upon conversion into common stock, and
to pay interest (&ldquo;<B>Interest</B>&rdquo;) on any outstanding Principal at a simple Interest Rate of eight percent (8%) from
the date set out above as the Issuance Date (the &ldquo;<B>Issuance</B> <B>Date</B>&rdquo;) until the same becomes due and payable,
whether in cash at the Maturity Date or upon calling of the note and/or accrued interest or upon conversion into common stock.
This Subordinated Convertible Note (including all Subordinated Convertible Notes issued in exchange or replacement hereof, this
&ldquo;<B>Note</B>&rdquo;) is issued pursuant to a Socket Mobile Board of Directors resolution dated July 25, 2012 approving the
issuance of the notes by the Company.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">1.
<U>PAYMENTS OF PRINCIPAL</U>. On the Maturity Date, the Company shall pay to the Holder an amount in cash representing all outstanding
Principal. The Note Holder shall have the right, on or after February 1, 2013, to call for repayment of any or all of the note
principal. Such call shall be made in writing to the Chief Financial Officer. Repayment shall be made no later than three business
days following receipt of the repayment call notice.</FONT></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">2.
<U>INTEREST; INTEREST RATE</U>. Interest on this Note shall commence accruing on the Issuance Date and shall be payable on the
Maturity Date. Interest Rate shall be eight percent (8%) simple interest. The Note Holder shall have the right, on or after February
1, 2013, to call for repayment of any or all of the note interest. Such call shall be made in writing to the Chief Financial Officer.
Repayment shall be made no later than three business days following receipt of the repayment call notice.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.
<U>CONVERSION OF NOTES</U>. This Note and accrued interest shall be convertible into validly issued, fully paid and non-assessable
shares of Common Stock at any time on or prior to the Maturity Date at the option of the Holder.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)<FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Conversion Right</U>. At any time or times on or after the Issuance Date up to and including the Maturity Date, the
Holder shall be entitled to convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into validly
issued, fully paid and non-assessable shares of Common Stock in accordance with Section 3(c), at the Conversion Price (as defined
below). The Company shall not issue any fraction of a share of Common Stock upon any conversion. If the issuance would result
in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up
to the nearest whole share. The Company shall pay any and all transfer, stamp, issuance and similar taxes that may be payable
with respect to the issuance and delivery of Common Stock upon conversion of any Conversion Amount.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)<FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Conversion Formula</U>. The number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant
to Section 3(a) shall be determined by dividing (x) such Conversion Amount by (y) the Conversion Price (the &ldquo;<B>Conversion
Rate</B>&rdquo;).</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.75in; text-align: justify; text-indent: 0.75in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)<FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>&ldquo;<B>Conversion Amount</B>&rdquo; means the portion of the Principal to be converted, redeemed or otherwise with respect
to which this determination is being made, plus all <FONT STYLE="color: black">accrued and unpaid Interest with respect to such
portion of the Principal amount, in an amount as determined by the Holder</FONT>.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.75in; text-align: justify; text-indent: 0.75in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)<FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>&ldquo;<B>Conversion Price</B>&rdquo; means, as of any Conversion Date or other date of determination, a) if warrants previously
issued to Hudson Bay Master Fund are outstanding on the Conversion Date, $2.44 per share; or b) if no warrants previously issued
to Hudson Bay Master Fund are outstanding on the Conversion Date, $2.00 per share.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.75in; text-align: justify; text-indent: 0.75in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)<FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><B>&ldquo;Conversion Date&rdquo; </B>means the date conversion is requested by the Holder. Conversion may be requested
at anytime up to and including the Maturity Date.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.75in; text-align: justify; text-indent: 0.75in"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.75in; text-align: justify; text-indent: 0.75in"></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)<FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Mechanics of Conversion</U>.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.75in; text-align: justify; text-indent: 0.75in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)<FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Optional Conversion</U>. To convert any Conversion Amount into shares of Common Stock on any &ldquo;<B>Conversion Date</B>&rdquo;,
the Holder shall deliver (whether via facsimile or otherwise), for receipt on or prior to 11:59 p.m., Pacific time, on such date,
a copy of an executed notice of conversion in the form attached hereto as <U>Exhibit I</U> (the &ldquo;<B>Conversion Notice</B>&rdquo;)
to the Company. The Holder shall surrender this Note to a nationally recognized overnight delivery service for delivery to the
Company (or an indemnification undertaking with respect to this Note in the case of its loss, theft or destruction as contemplated
by Section 8). On or before the first (1<SUP>st</SUP>) Trading Day following the date of receipt of a Conversion Notice, the Company
shall transmit by facsimile or email an acknowledgment of confirmation, in the form attached hereto as <U>Exhibit II</U>, of receipt
of such Conversion Notice to the Holder and the Company&rsquo;s transfer agent (the &ldquo;<B>Transfer Agent</B>&rdquo;). On or
before the third (3rd) Trading Day following the date of receipt of a Conversion Notice, the Company shall cause the Transfer
Agent to issue and deliver (via reputable overnight courier) to the address as specified in the Conversion Notice, a restricted
certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder
shall be entitled. If this Note is physically surrendered for conversion pursuant to this Section and the outstanding Principal
of this Note is greater than the Principal portion of the Conversion Amount being converted, then the Company shall as soon as
practicable and in no event later than three (3) Business Days after receipt of this Note and at its own expense, issue and deliver
to the Holder (or its designee) a new Note representing the outstanding Principal not converted. The Person or Persons entitled
to receive the shares of Common Stock issuable upon a conversion of this Note shall be treated for all purposes as the record
holder or holders of such shares of Common Stock on the Conversion Date.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.75in; text-align: justify; text-indent: 0.75in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)<FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Principal Market Regulation</U>. The Company shall not issue any shares of Common Stock upon conversion of this Note
if the issuance of such shares of Common Stock would exceed the aggregate number of shares of Common Stock which the Company may
issue upon conversion of the Note without breaching the Company&rsquo;s obligations under the rules or regulations of the Principal
Market, except that such limitation shall not apply in the event that the Company (A) obtains the approval of its stockholders
as required by the applicable rules of the Principal Market for issuances of shares of Common Stock in excess of such amount or
(B) obtains a written opinion from outside counsel to the Company that such approval is not required, which opinion shall be reasonably
satisfactory to the Holder.</FONT></P>

<P STYLE="font: normal 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.<FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>RESERVATION OF AUTHORIZED SHARES</U></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Company shall initially reserve out of its authorized and unissued Common Stock a number of shares of Common Stock for the Note
sufficient to convert 100 percent of the principle and interest at the Maturity Date. So long as any of the Note is outstanding,
the Company shall take all action reasonably necessary to reserve and keep available out of its authorized and unissued Common
Stock, solely for the purpose of effecting the conversion of the Note and accrued interest, the number of shares required to be
reserved by the previous sentence (the &ldquo;<B>Required Reserve Amount</B>&rdquo;).</FONT></P>

<P STYLE="font: normal 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"></P>

<P STYLE="font: normal 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: normal 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: normal 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">5.<FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>VOTING RIGHTS</U>. The Holder shall have no voting rights as the holder of this Note, except as required by law (including,
without limitation, the Delaware General Corporation Law).</FONT></P>

<P STYLE="font: normal 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">6.<FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>RANK</U>. All payments due under this Note (a) shall rank <I>pari passu</I> with all Notes issued with the same rank
(<B>&ldquo;Other Notes&rdquo;</B>), and (b) shall be senior to all other Indebtedness of the Company except assets securing specific
liens relating to those assets, and Collateral assigned to Silicon Valley Bank which holds the senior security interest on all
of the Company&rsquo;s assets in connection with balances outstanding on the Company&rsquo;s revolving line of credit.</FONT></P>

<P STYLE="font: normal 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.<FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>SECURITY</U>. This Note and the Other Notes are secured by the assets of the Company including its intellectual property
assets (<B>&ldquo;Collateral&rdquo;</B>) excluding assets securing specific liens, and is in second position to Silicon Valley
Bank which has a perfected senior position to the Collateral to secure outstanding balances on its revolving credit facilities
with the Company.</FONT></P>

<P STYLE="font: normal 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.<FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>LOST, STOLEN OR MUTILATED NOTE</U>. Upon receipt by the Company of evidence reasonably satisfactory to the Company of
the loss, theft, destruction or mutilation of this Note (as to which a written certification and indemnification shall suffice
as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company
in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company shall
execute and deliver to the Holder a new Note representing the outstanding Principal.</FONT></P>

<P STYLE="font: normal 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">9.<FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>CURRENCY</U>. All dollar amounts referred to in this Note are in United States Dollars (&ldquo;<B>U.S. Dollars</B>&rdquo;),
and all amounts owing under this Note shall be paid in U.S. Dollars.</FONT></P>

<P STYLE="font: normal 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.<FONT STYLE="font-size: 7pt">&nbsp;
</FONT><U>CANCELLATION</U>. After all Principal and accrued Interest owed on this Note have been paid in full, this Note shall
automatically be deemed canceled, shall be surrendered to the Company for cancellation and shall not be reissued.</FONT></P>

<P STYLE="font: normal 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">11.<FONT STYLE="font-size: 7pt">&nbsp; </FONT><U>GOVERNING
LAW</U>. This Note shall be construed and enforced in accordance with, and all questions concerning the
construction, validity, interpretation and performance of this Note shall be governed by, the internal laws of the State of
California, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of
California or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State
of California for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any
claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is
brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner permitted by law. In the event that any
provision of this Note is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be
deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or
rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or
enforceability of any other provision of this Note. Nothing contained herein shall be deemed or operate to preclude the
Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the
Company&rsquo;s obligations to the Holder, to realize on any collateral or any other security for such obligations, or to
enforce a judgment or other court ruling in favor of the Holder. <B>THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT
MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR
ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY.</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">IN
WITNESS WHEREOF, the Company has caused this Note to be duly executed as of the Issuance Date set out above.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 0.7pt; padding-left: 0.7pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">SOCKET
    MOBILE, INC.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 50%; padding-right: 0.7pt; padding-left: 0.7pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">By:</FONT></TD>
    <TD STYLE="width: 30%; border-bottom: windowtext 1pt solid; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">/s/
    David W. Dunlap</FONT></TD>
    <TD STYLE="width: 17%; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.7pt; padding-left: 0.7pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt">Name:
        David W. Dunlap</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt">Vice
        President, Finance and Administration </FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt">and
        Chief Financial Officer</FONT></P></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: center">&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif"><B>EXHIBIT
I<BR>
<BR>
<FONT STYLE="text-transform: uppercase">Socket Mobile</FONT>, INC.<BR>
CONVERSION NOTICE</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Reference
is made to the Subordinated Convertible Note (the &ldquo;<B>Note</B>&rdquo;) issued to the undersigned by Socket Mobile, Inc.
(the &ldquo;<B>Company</B>&rdquo;). In accordance with and pursuant to the Note, the undersigned hereby elects to convert the
Conversion Amount (as defined in the Note) of the Note indicated below into shares of Common Stock, $0.001 par value per share
(the &ldquo;<B>Common Stock</B>&rdquo;), of the Company, as of the date specified below.</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-left: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Date
    of Conversion:</FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="7" STYLE="font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-left: 0.75in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Aggregate
    Principal to be converted:</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="7" STYLE="font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-left: 0.75in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Aggregate
    <FONT STYLE="color: black">accrued and unpaid Interest with respect to such portion of the Aggregate Principal and such Aggregate
    Interest to be converted:</FONT></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="7" STYLE="font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-left: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">AGGREGATE
    CONVERSION AMOUNT<BR> &nbsp;TO BE CONVERTED:</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="8" STYLE="font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Please
    confirm the following information:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="4" STYLE="font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-left: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Conversion
    Price:</FONT></TD>
    <TD COLSPAN="4" STYLE="border-bottom: windowtext 1pt solid; font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="6" STYLE="font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-left: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Number
    of shares of Common Stock to be issued:</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="8" STYLE="font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Please
    issue the Common Stock into which the Note is being converted in the following name and to the following address:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-left: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Issue
    to:</FONT></TD>
    <TD COLSPAN="7" STYLE="border-bottom: windowtext 1pt solid; font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-top: 6pt; padding-left: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="7" STYLE="border-bottom: windowtext 1pt solid; font: 12pt Times New Roman, Times, Serif; padding-top: 6pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding-top: 6pt; padding-left: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="7" STYLE="border-bottom: windowtext 1pt solid; font: 12pt Times New Roman, Times, Serif; padding-top: 6pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-left: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Tax
    ID:</FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-left: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Facsimile
    Number:</FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-left: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Holder:</FONT></TD>
    <TD COLSPAN="5" STYLE="border-bottom: windowtext 1pt solid; font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-left: 1in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">By:</FONT></TD>
    <TD COLSPAN="6" STYLE="border-bottom: windowtext 1pt solid; font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Title:</FONT></TD>
    <TD COLSPAN="6" STYLE="border-bottom: windowtext 1pt solid; font: 12pt Times New Roman, Times, Serif; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Dated:</FONT></TD></TR>
<TR>
    <TD STYLE="width: 19%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 21%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 17%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 33%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>EXHIBIT
II</B></FONT></P>

<P STYLE="font: bold 12pt Times New Roman Bold; margin: 0 0 12pt; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>ACKNOWLEDGMENT</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Company hereby acknowledges this Conversion Notice and hereby directs American Stock Transfer &amp; Trust to issue the above indicated
number of shares of Common Stock.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 0.7pt; padding-left: 0.7pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">SOCKET
    MOBILE, INC.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 50%; padding-right: 0.7pt; padding-left: 0.7pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">By:</FONT></TD>
    <TD STYLE="width: 30%; border-bottom: windowtext 1pt solid; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></TD>
    <TD STYLE="width: 17%; padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.7pt; padding-left: 0.7pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 0.7pt; padding-left: 0.7pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt">Name:</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; letter-spacing: -0.1pt">Title:</FONT></P></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>



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<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>pressrelease.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: right"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Exhibit
99.1</B></FONT><B><FONT STYLE="font-size: 18pt">&nbsp;</FONT></B></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font: 18pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font: 18pt Times New Roman, Times, Serif"><B>Socket
Mobile Officers and Directors Complete<BR>
Subordinated Convertible Note Financing of $400,000</B></FONT></P>

<P STYLE="font: 11pt/150% Arial, Helvetica, Sans-Serif; margin: 0.1pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt/150% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt/150% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>NEWARK,
Calif. &ndash; August 3, 2012</B> <B>&ndash; </B>Socket Mobile, Inc. (OTC: SCKT), an innovative provider of mobile productivity
solutions, today announced completion of a subordinated convertible note financing of $400,000. The purchasers of the notes are
officers and directors of the Company. The proceeds will be used for working capital purposes, including ramping up production
of the Company&rsquo;s new SoMo655 handheld computer that was released at the end of last month.</FONT></P>

<P STYLE="font: 11pt/150% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt/150% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
notes are two year notes that mature on August 1, 2014. The interest rate on the notes is 8 percent, payable upon redemption.
The holder of each note may require the Company to redeem the principal amount of the note plus accrued interest after six months.
The principal and accrued interest on the notes are convertible at the option of the holder into common stock at $2.44 per share
if warrants previously issued to Hudson Bay Capital Master Fund continue to be outstanding at the time of conversion, or $2.00
per share if they are not. The notes are secured by the assets of the Company and are subordinated to the Company&rsquo;s working
capital line of credit with its bank. More detailed information is available in a Form 8-K being filed today.</FONT></P>

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<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>About
Socket Mobile, Inc.&#9;</B></FONT></P>

<P STYLE="font: 11pt/150% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
20 years of experience in the Automatic Identification and Data Capture (AIDC) market, Socket makes mobile computing and productivity
work. The company offers a family of handheld computers and an extensive portfolio of AIDC peripherals specifically designed to
increase productivity and drive operational efficiencies in healthcare, hospitality and other business mobility deployments. The
company also offers OEM solutions for the mobile device market. Socket is headquartered in Newark, Calif. and can be reached at
510-933-3000 or www.socketmobile.com. Follow Socket Mobile on Twitter @socketmobile and subscribe to sockettalk.socketmobile.com,
the company&rsquo;s official blog.</FONT></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 11pt Arial, Helvetica, Sans-Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top; font-weight: bold">
    <TD STYLE="width: 32%; padding: 0.1pt 5.4pt; tab-stops: center 3.0in right 6.0in; font-weight: bold"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Socket
    Media Contact:</B></FONT></TD>
    <TD STYLE="width: 30%; padding-right: 5.4pt; padding-left: 5.4pt; tab-stops: center 3.0in right 6.0in; font-weight: bold"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Socket
    Investor Contact:</B></FONT></TD>
    <TD STYLE="width: 38%; padding-right: 5.4pt; padding-left: 5.4pt; tab-stops: center 3.0in right 6.0in; font-weight: bold"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Investor
    Relations Contact:</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; tab-stops: center 3.0in right 6.0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Angela
    Slate</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; tab-stops: center 3.0in right 6.0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Dave
    Dunlap</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; tab-stops: center 3.0in right 6.0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Todd
    Kehrli / Jim Byers</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; tab-stops: center 3.0in right 6.0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">PR
    and Marcom Specialist</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; tab-stops: center 3.0in right 6.0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Chief
    Financial Officer</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; tab-stops: center 3.0in right 6.0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">MKR
    Group, Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; tab-stops: center 3.0in right 6.0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">510-933-3055</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; tab-stops: center 3.0in right 6.0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">510-933-3035</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; tab-stops: center 3.0in right 6.0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">323-468-2300</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; tab-stops: center 3.0in right 6.0in; font-size: 12pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">angela@socketmobile.com</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; tab-stops: center 3.0in right 6.0in; font-size: 12pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">dave@socketmobile.com</FONT></TD>
    <TD STYLE="padding: 0.1pt 5.4pt; font-size: 12pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">sckt@mkr-group.com</FONT></TD></TR>
</TABLE>
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<P STYLE="font: 10pt/120% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Socket
and SoMo are registered trademarks of Socket Mobile. All other trademarks and trade names contained herein may be those of their
respective owners.</I></FONT></P>

<P STYLE="font: 10pt/120% Arial, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&copy; 20<FONT STYLE="font-size: 10pt">12, Socket
Mobile, Inc. All rights reserved.</FONT></FONT></P>



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